March 26, 2019

GPO-study-2019-infographic.jpgThis study prepared for IFDA by Technomic provides insight into strategically managing business in the foodservice channel around Group Purchasing Organizations (GPOs). It details current use, future plans and trends among foodservice operators, as well as distributor and manufacturer perspectives. As the GPO market continues to rapidly evolve, it’s increasingly important to understand and navigate this operating environment. The report was published in 2019 and is based on 2018 data.

Highlights include:
  • Total market size for traditional GPOs in 2018 = $31.8 billion (not including purchases made by GPOs owned by foodservice management firms like Sodexho, Compass and Aramark).
  • Since 2014, the traditional GPO market has grown an average of 6.7% per year, outpacing the broader foodservice industry’s growth. Future GPO growth through 2022 is projected at 6%-7% per year.
  • GPO growth has been particularly noticeable in the restaurant segment. Independent and small chain growth and penetration have increased dramatically, and is projected to grow by 10%-12% annually through 2022.
  • Overall, an average of 81% of operators who belong to a GPO are satisfied with the GPO’s performance.
  • The most common GPO purchase categories mirror the largest categories purchased in the foodservice space overall, and include beef, dairy, poultry, condiments and eggs.
  • Among operators who buy beef, dairy, eggs, poultry and fresh produce through GPOs, roughly 1/3 say they’re purchasing more of those products through their GPOs now than they did three years ago.
Price: Free to IFDA Distributor Members as an exclusive member benefit.

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